On top of worrying about how to deal with creditors and pay monthly bills, people in Tennessee who struggle with serious financial problems may also have to be concerned about having a place to live. Homeowners facing these types of issues may be at risk of losing their homes and may want to find solutions that allow them to keep their treasured houses. Filing for a Chapter 13 bankruptcy may help them do just this.
There are many advantages to filing Chapter 13 bankruptcy for those who are able. However, filing for Chapter 13 bankruptcy in Tennessee means meeting certain eligibility requirements in regard to the debt that one owes, as well as the income that one earns. There are limits to the amounts of debt that one can owe and still qualify for Chapter 13 bankruptcy. Specifically, according to the United States Courts, one must owe less than $1,184,200 in secured debt and no more than $394,725 in unsecured debt.
Having made the decision to file for Chapter 13 bankruptcy in Nashville, you are likely to remain fairly resolute with it. After all, such a decision should not be taken lightly. While bankruptcy does offer you the advantage of halting any creditor actions from being taken against you (while also allowing you to retain some of your more important personal assets, like your home), it is not without its share of challenges and difficulties. For this reason, many of those who come to see us here at Rothschild & Ausbrooks, PLLC are often discouraged when they are told that before filing for bankruptcy, they must complete credit counseling.
Financial problems can often be contributors to marital strife. Many a couple in Tennessee has found themselves facing the end of a marriage in part due to excessive debt or different financial styles. Some people may choose to file for Chapter 13 bankruptcy in an effort to save their troubled marriages. When this decision ends up not working and a divorce is inevitable, it can leave spouses wondering how their bankruptcy may be impacted.
It might be easy for those in Nashville who are struggling with debt to think that the answer to their problems is to simply make more money. This no doubt comes from the perception that an abundance of income can easily overcome one's liabilities. Yet there are countless cases out there suggesting the contrary. People at all income levels may be subject to financial struggles, many of which are due to a plethora of circumstances. Some might be saddled with unexpected medical expenses; others might simply struggle in effectively managing their money. Then there are those who face a seemingly perfect storm of dire financial circumstances.
Many in Nashville often ask "when does filing for bankruptcy become your best option in dealing with your debt?" Unfortunately, there is no easy answer to that question. There may be cases where simply "tightening your belt" for six months to a year would allow to get your debts back under control. However, there may come a point where multiple creditors are looking to initiate collection activities against you, which could serve to further compound your struggles. In these situations, the automatic stay afforded through a Chapter 13 bankruptcy could prove to be beneficial.
Nashville residents might be surprised to learn that more than one-fourth of all U.S. households are laboring to pay large medical debt, according to The Atlantic. Unless, of course, they happen to be one of those families. What is more surprising is that those struggling with medical bills are not the patients with long-term illnesses but the ones who suffer a one-time illness who are struggling more.
Tennesseans currently wading through a sea of debt know all too well that recovering from this financial hit can take a considerable amount of time and effort. Not only does a money issue create immediate complications; it can linger and worsen if unaddressed. Although each situation can be unique, a common question surfaces during this process: what are the main differences between Chapter 7 and Chapter 13?
Perhaps one of the most common concerns among people in Tennessee who are considering filing for bankruptcy is how severe the impact will be to their credit scores. This is an understandable concern as credit scores are evaluated in so many things today including many pre-employment hiring background checks. However, as MarketWatch indicates, while you should be prepared for an initial drop in your credit score after filing bankruptcy, you can help it improve sooner than you may think.
When faced with serious financial challenges, many Tennessee residents may understandably begin to consider whether or not filing for bankruptcy might be the best option for them. In making this decision, it will be important for people to have an understanding about the two primary forms of consumer bankruptcy and how each plan differs. This knowledge will help debtors to make the right choice for their debt-relief needs.